The Bharatiya Janata Party’s (BJP) promise to invest₹100 trillion in infrastructure across the next five years has fired up optimism in the sector, with the party securing a thumping win in the 17th Lok Sabha elections.
The last five years have seen massive spending in roads, railways, water, irrigation and urban infrastructure. With a spate of mergers and acquisitions, the secondary market was active as well. In the roads sector alone, 52 projects worth₹37,019 crore were sold between 2015 and 2018, besides the new 30-year lease toll-operate-transfer (TOT) model introduced to recycle capital and auction operating road assets to private equity investors.
The first TOT auction fetched ₹9,681 crore, a 50% premium over the base price. “With the continuity in the government, the total budgetary allocation towards the major infrastructure segments is estimated to grow and remain in the range of ₹4-4.5 lakh crore per annum, Read More
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